Oil demand is anticipated to follow an upward trajectory in the near future, potentially stabilizing current market fluctuations. The Algerian Minister of Energy and Mines, Mohamed Arkab, announced today in Algiers.
These comments were made after his participation via videoconference in the 55th meeting of the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, according to a statement from the ministry.
The meeting, attended by the President of the National Agency for the Valorization of Hydrocarbon Resources and other ministry officials, focused on evaluating the compliance levels with production cut commitments by OPEC+ countries for May and June 2024. It also included discussions on the current state and short-term outlook of the global oil market.
At the conclusion of the meeting, Minister Arkab emphasized that “the Joint Ministerial Monitoring Committee members remain highly vigilant regarding short-term developments in the global oil market,” as stated in the release.
He added, “The noticeable market volatility over the past few weeks is primarily due to uncertain global economic conditions, driven by weak growth in both industrialized and emerging economies, which has led to a more pronounced slowdown in global oil demand.”
Arkab highlighted that “the uncertainties affecting the fundamentals of the oil market are unlikely to persist much longer as long as the market remains adequately supplied. It is anticipated that oil demand will follow a sustained upward trend in the coming weeks.”
The members of the Joint Ministerial Monitoring Committee agreed to intensify consultations, regularly exchange views, and closely monitor any developments that could impact the evolution of market fundamentals, according to the minister.
Source: APS
